New Delhi, May 18: Gold prices remained flat at Rs 1.62 lakh per 10 grams in the national capital on Monday, while silver rates edged higher to Rs 2.76 lakh per kilogram amid fresh restrictions on imports of the white metal and weakness in the rupee.
According to the All India Sarafa Association, the white metal appreciated by Rs 1,000 to Rs 2,76,000 per kg (inclusive of all taxes) from Friday’s closing level of Rs 2,75,000 per kg.
Gold of 99.9 per cent purity was unchanged at Rs 1,62,800 per 10 grams in the bullion market, according to the association.
Analysts said domestic bullion prices remained relatively resilient despite weakness in global markets.
Gold prices in the domestic market traded flat on Monday, following a sharp sell-off in the previous session, tracking weakness in the international bullion market, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
However, losses in local prices remained limited as the Indian rupee weakened further to a record low of about 96.37 against the US dollar. The weaker rupee continued to cushion the decline in domestic gold prices, he added.
Market participants also reacted to the central government’s decision to impose immediate restrictions on silver imports in nearly all forms, a move aimed at easing pressure on the rupee and curbing non-essential imports.
“The move is expected to lower silver imports and tighten domestic availability, which could lead to higher premiums in the local market,” Gandhi added.
In the international market, spot gold was trading marginally lower at USD 4,535.23 per ounce, while silver fell nearly 1 per cent to USD 75.42 per ounce.
Spot gold fell on Monday as the US dollar and oil prices extended their gains from the previous week, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Meanwhile, the US-China summit concluded on a somewhat positive note as President Donald Trump did not raise contentious issues like technology, trade and tariffs.
“Consequently, global bond yields surged, which further boosted downside pressure on the yellow metal,” Singh added.
Investors remain focused on ongoing US-Iran developments, along with rupee-dollar movement, which continue to drive volatility across bullion markets, according to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. (PTI)
